The schedule below gives the demand curve facing a monopoly firm.

Price	Quantity Sold	MR
8	0
7	1
6	2
5	3
4	4
3	5
2	6
1	7

Table 1: Demand schedule facing a monopoly

(2.1) What is the marginal revenue for a perfectly price discriminating monopolist from the sale of each unit of output?

(2.2) If the firm’s marginal cost is constant at $3.00, what is the output produced by a perfectly price discriminating monopolist?

(2.3) What is the total revenue received by a perfectly price discriminating monopolist at the profit maximizing level of output?

(2.4) Assuming that fixed costs are zero, what is the total cost incurred by the monopolist at the profit maximizing level of output?

(2.5) Assuming that fixed costs are zero, how much profits are earned by the monopolist at the profit maximizing level of output?

Expert Solution

Rahul Sunny answered 2 years ago

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